How to Use “Magical Loops” to Grow Your Business

In business, there’s nothing more magical than a never-ending loop of customers coming in and vendors/sellers happy to do business with you. This is what’s known as a “magical loop” and it’s the key to sustaining a successful business. In this blog post, we’ll explore how various online marketplaces and platforms use magical loops to bring in new users and keep them coming back for more.



DoorDash is a food delivery service that partners with restaurants in order to provide customers with convenient access to their favorite meals. To recruit vendors/sellers, DoorDash relies heavily on word-of-mouth marketing. They offer restaurant owners a commission for every new customer they refer to the platform. This commission-based system incentivizes restaurant owners to promote DoorDash to their customers, leading to an influx of new users for the platform.


Faire is an online marketplace for artisanal goods. They work with local artisans and craftsmen to help them sell their wares to a wider audience. To recruit sellers, Faire offers them a free six-month trial period to list their products on the site. This allows sellers to test out the platform and see if it’s a good fit for their business before committing to anything long-term.


Etsy is an online marketplace that connects buyers with handmade goods, vintage items, and craft supplies from independent sellers around the world. Etsy encourages people who make or design unique products to sell on their platform by offering them a simple and easy-to-use interface for listing their items. Because of this, Etsy has become a go-to destination for people looking for one-of-a-kind gifts or home decor items.


Cameo is a platform that allows fans to book personalized video messages from their favorite celebrities, athletes, and influencers. Celebrities, athletes, and influencers join Cameo in order to connect with their fans and monetize their popularity. Fans are willing to pay top dollar for these personalized messages because they add a special touch to birthdays, anniversaries, graduations, etc.



Substack is an email newsletter service that allows content creators to easily start and grow their own newsletters. Substack recruits content creators by offering them a share of the revenue generated from paid subscriptions. This revenue sharing arrangement incentivizes content creators to produce high-quality content that will attract paying subscribers. As more people subscribe to a creator’s Substack newsletter, the creator earns more money—creating a never-ending loop of revenue for both Substack and the content creator.


Kickstarter is a crowdfunding platform that helps entrepreneurs raise funding for their projects. Kickstarter recruits entrepreneurs by offering them a way to pre-sell their products or services in order to generate interest and momentum for their campaign. If an entrepreneur is able to successfully pre-sell enough units of their product or service, they are then able to secure the funding they need from backers on Kickstarter—allowing them to bring their project to life.


Eventbrite is an online event ticketing platform that makes it easy for event hosts quicken draw potential attendees using its simple listing process and user-friendly interface.. Eventbrite also offers unique features such as allowing event hosts print tickets directly from the site or providing attendees with mobile apps so they can easily access event information on the go.. These features make Eventbrite stand out from similar service providers such as Ticketmaster.. By offering hosts an easy way list their events and attendees with convenient tools access event information, Eventbrite has become one of the most popular platforms host events online..


As you can see, “magical loops” are key sustaining success any type of business.. If you’re looking ways attract new customers keep them coming back your product or service,, consider implementing strategies used by popular marketplaces platforms like DoorDash,, Faire,, Etsy,, Cameo,, Substack,, Kickstarter,, Eventbrite.. With little effort on part,, you be well on your way growing thriving business!..

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